Capital Market Governance Requires Robust Legal Framework
Sen. Osita Izunaso, Chairman of the Senate Committee on Capital Market and Institutions, says effective capital market governance now requires robust legal frameworks to preserve market integrity.
Izunaso said this at the 16th Virtual Inaugural Lecture of the Capital Market Academics of Nigeria in Abuja
He said the legal frameworks must also remain flexible enough to accommodate innovation and emerging financial products.
The senator called on the National Assembly to institute periodic reviews of the Investments and Securities Act and other financial sector laws.
According to him, the reviews will ensure that Nigeria’s legal framework remains responsive to technological innovation, international regulatory developments and evolving market practices.
He said a structured review mechanism, undertaken in consultation with regulators, market operators, academics and investors, would promote regulatory certainty and keep the law aligned with global developments.
Izunaso also called for stronger legislative oversight of the Securities and Exchange Commission and other capital market institutions to promote transparency, accountability and effective implementation of statutory mandates.
He urged sustained legislative support to encourage broader domestic participation in the capital market through enhanced investor education and improved financial literacy.
According to him, stronger consumer protection and policies that encourage the participation of women, youths and small and medium-sized enterprises are also essential.
The senator said emerging issues such as digital assets, virtual asset service providers, artificial intelligence, tokenised securities, financial market infrastructure, cybersecurity and sustainable finance require clear regulatory guidance.
He said the legislature should also support policies that strengthen corporate governance, market transparency and enforcement against insider trading, market manipulation, fraudulent investment schemes and other market abuses.
“Investor confidence remains the most valuable asset of any capital market, and preserving that confidence requires unwavering commitment to the rule of law and regulatory integrity,” he said.
Izunaso said the capital market must increasingly serve as a major channel for mobilising long-term domestic and foreign investment as Nigeria pursues its economic transformation agenda.
He added that legislative leadership would remain a key determinant of the future of Nigeria’s capital market.
The lecture had the theme: “Legislative Leadership and Capital Market Development in Nigeria: Strengthening the Legal Framework for Economic Transformation. #Capital Market Governance Requires Robust Legal Framework# Nigeria Capital Market Masterplan 2.0: Catalysing Growth Through Strategic Alignment
